After trading cryptocurrencies for so many years, Brother Sen has discovered a pattern: 90% of retail investors will trip over 'good news.' Either they go crazy chasing the highs upon hearing good news, or they cling to their fantasies after the good news is realized, only to be caught badly. Today's third experience will break down this core logic: good news realization is bad news, and how to grasp the corresponding operation rhythm.
First, you need to understand a core logic: the cryptocurrency market is essentially 'driven by expectations.' Before good news is announced, the market will have already digested this expectation in advance, and many major players will take the opportunity to pump the price based on 'good news expectations'; when the good news is actually realized, those major players who positioned themselves early will take the opportunity to sell, leading to a market decline. This is the underlying logic of 'good news realization is bad news.'
Brother Sen gives a real case: In 2021, a certain mainstream currency was set to launch a significant upgrade. A month before the announcement, the market rose from 30,000 to 50,000, which is the market digesting the good news expectations; however, on the day of the official upgrade launch, the market not only did not rise but instead fell by 15%, and many retail investors who chased high prices that day were directly trapped. Another time, a certain platform announced it would launch a popular currency, and after the news came out, the currency continued to rise, but on the day it went live, it opened high and fell low, with many retail investors buying at high prices, and it took more than half a year to break even.
So how should we operate when good news comes? Brother Sen gives everyone two core principles: First, if there’s no selling on the day of significant good news, and if it opens high the next day, be sure to sell in time. Because opening high often represents the last opportunity for the main force to sell, and if you don't run at this time, you can easily get trapped; second, if the market opens low directly after the good news is released, it means the market has already digested the expectations in advance, and even the main force may have sold in advance. At this time, don’t harbor illusions, and stop losses in time.
One more thing to remind everyone: learn to distinguish between 'real good news' and 'fake good news'. Real good news has genuine landing scenarios and can actually enhance the value of the currency, such as technological upgrades, ecological expansion, and significant collaborations; fake good news is purely hype, such as baseless rumors and false promotions that ride on trending topics. For fake good news, it is essential to avoid it decisively and not be swayed by emotions.
Remember: In the crypto world, emotions are always lagging behind the news. Don't wait for good news to chase highs, and don't panic when bad news comes out. Grasp the rhythm of 'expectation digestion' well, and you can stabilize your position amidst the fluctuations of news.@男神说币 #比特币流动性 $BTC
